Tiptree (NASDAQ:TIPT) & Fidelis Insurance (NYSE:FIHL) Head to Head Analysis

Fidelis Insurance (NYSE:FIHLGet Free Report) and Tiptree (NASDAQ:TIPTGet Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Institutional and Insider Ownership

82.0% of Fidelis Insurance shares are owned by institutional investors. Comparatively, 37.8% of Tiptree shares are owned by institutional investors. 31.8% of Tiptree shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Fidelis Insurance and Tiptree’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fidelis Insurance $3.60 billion 0.51 $2.13 billion $4.12 3.78
Tiptree $1.65 billion 0.40 $13.95 million $0.57 31.26

Fidelis Insurance has higher revenue and earnings than Tiptree. Fidelis Insurance is trading at a lower price-to-earnings ratio than Tiptree, indicating that it is currently the more affordable of the two stocks.

Dividends

Fidelis Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.6%. Tiptree pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. Fidelis Insurance pays out 9.7% of its earnings in the form of a dividend. Tiptree pays out 42.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Tiptree has raised its dividend for 2 consecutive years. Fidelis Insurance is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and price targets for Fidelis Insurance and Tiptree, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fidelis Insurance 0 4 4 0 2.50
Tiptree 0 0 0 0 N/A

Fidelis Insurance presently has a consensus target price of $18.94, indicating a potential upside of 21.47%. Given Fidelis Insurance’s higher probable upside, equities analysts clearly believe Fidelis Insurance is more favorable than Tiptree.

Profitability

This table compares Fidelis Insurance and Tiptree’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fidelis Insurance 23.31% 17.97% 3.87%
Tiptree 1.36% 12.49% 1.43%

Summary

Fidelis Insurance beats Tiptree on 12 of the 15 factors compared between the two stocks.

About Fidelis Insurance

(Get Free Report)

Fidelis Insurance Holdings Limited, together with its subsidiaries, provides insurance and reinsurance products in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, and other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.

About Tiptree

(Get Free Report)

Tiptree Inc., through its subsidiaries, provides specialty insurance products and related services primarily in the United States. It operates through two segments: Insurance and Mortgage. The company offers niche; commercial lines insurance products, including professional liability, general liability, contractual liability protection, property and other short-tail, and alternative risks insurance products; and personal lines insurance products, such as credit protection surrounding loan payments. It also provides auto and consumer warranty programs, including mobile devices, consumer electronics, appliances, furniture; and vehicle service contracts, GAP, and ancillary products; as well as premium or warranty contract financing services, lead generation support, and business process outsourcing services. In addition, the company offers mortgage loans for institutional investors; asset management services; and maritime shipping and asset management services, as well as invests in shares. It markets its products through a network of independent insurance agents, consumer finance companies, online retailers, auto dealers, and regional big box retailers. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was founded in 1978 and is headquartered in Greenwich, Connecticut.

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